3 Reasons I Should Learn How To Wholesale Real Estate

Wholesaling real estate is an easy and fast way to make money as a real estate investor. If you want to make quick cash as a real estate investor, learning how to wholesale real estate is definitely for you. There are several reasons why this is true.

(1) To wholesale real estate you don't need cash. The secret is when you learn to wholesale real estate, you don't get paid to buy houses, you get paid to find and control the right to buy them. You do this my making a lot of offers, marketing yourself as a buyer of wholesale real estate and by identifying the neighborhoods and types of properties where wholesale real estate deals can be found. And then, after you simply make the offer and get a written agreement in place with the seller that gives you the right to buy the property at a wholesale real estate price, you sell the right to buy to another real estate investor for a fast cash profit. Most real estate wholesalers use an assignment of contract to make this sale. The other real estate investor closes on the wholesale real estate deal instead of you paying you thousands of dollars for the right to close. You don't need cash.

(2) To wholesale real estate you don't need credit. Most of the properties that you are going to locate as a real estate wholesaler are distressed, boarded up and often vacant or abandoned houses. In many cases, banks will not finance these properties even if you brought the wholesale real estate deal to them as applied for a loan. So, the way around that is simple. You simply find another real estate investor that has cash to close in your place. This is easier than you think. Since you will never be applying for a bank loan and most of the wholesale real estate deals you sell will be cash paid for by real estate investors that already have cash, you don't need credit.

(3) To wholesale real estate you don't have any risk. Too many times the thing that keeps people from taking action and making money as a real estate wholesaler is the fear of risk. To wholesale real estate, you don't have any risk. Let me show you exactly why you don't have risk.

First, as you have seen above, you will not use your cash and you will not use your credit to wholesale real estate. The service you offer to other wholesale real estate buyers is your ability to find and control real estate at wholesale prices. Because you won't be closing on the wholesale property yourself or doing any of the fix up or dealing with tenants, you don't have risk. The other real estate investor takes on all of the risk. This fact is why it is important that you leave most of the profit in the deal for your buyer. Your buyer will make more money than you on the deal, but they take all the risk so that is a fair trade.

Second, as a real estate wholesaler, you get paid to control wholesale real estate not close on it. You are probably asking if you risk losing your earnest money. If you don't manage the time line of your wholesale real estate deal correctly, you could put your earnest money at risk. However, right now I am going to teach you the key to eliminating this risk. When you make your wholesale real estate offer to the seller make sure your paperwork includes an inspection period that gives you the right to cancel the contract for any reason. Then, find your buyer during your inspection period and collect at least as much non-refundable earnest money from your buyer as you have with the seller. In many cases, your earnest money deposit will be $10 to $100. Always give your earnest money to the title company and never to the seller.

Learn these 3 simple truths about how to wholesale real estate and it will be clear to you that learning how to wholesale real estate is one of the key money making strategies you must master. I encourage you to learn how to wholesale real estate by reading the monthly Wholesaling Newsletter. This free monthly publication will teach you 8 of the best places to find great wholesale deals plus you'll get real life tips you can use to launch a successful wholesale real estate business.